CEO Blog: Future Water Association – Response to the Independent Commission on the Water Sector Regulatory System

During February, March, and early April we held sessions with our groups, members, and directly with members of the water commission discussing the Call for Evidence. Alongside this, as CEO, I held a direct meeting with Lee Pitcher, MP, who is Chair of the All Party Parliamentary Group for Water and the All-Party Parliamentary Group for Floods & Droughts. An active two to three months – the result:

Future Water Calls for Overhaul of UK Water Regulation

The Future Water Association (FWA) has issued a strong call for regulatory reform in the UK water sector, submitting an evidence-rich response to the Independent Commission on the Water Sector Regulatory System. Representing over 120 member organisations across the supply chain, FWA argues that outdated frameworks are hindering innovation, long-term investment, and public trust.

At the heart of the submission is a proposal for a clear national water vision—something the sector currently lacks. Unlike energy or transport, water has no unified strategic direction, leading to fragmented efforts, short-termism, and missed environmental targets. FWA believes a shared vision could provide the foundation for coherent investment, policy alignment, and better public engagement.

One of the central recommendations is the adoption of a dual-track regulatory model. This would regulate operational expenditure over a 20–25-year period, bringing stability and predictability, while retaining a five-year enhancement cycle to support agility. According to FWA, the current five-year Asset Management Period (AMP) model creates volatility, deters innovation, and disrupts supply chain continuity.

The response also criticises regulatory fragmentation. With Ofwat, the Environment Agency, and the DWI operating in silos, members report inefficiencies and delays, particularly when trialling new technologies. FWA proposes a Water Regulatory Coordination Forum to align objectives and improve oversight.

Innovation is another major focus. FWA argues that the sector’s innovation efforts are stifled by inconsistent standards, duplication of trials, and limited incentives for adoption. They recommend a national accreditation pathway and common technical standards to speed up the scale-up of proven solutions.

Crucially, the submission goes beyond policy. It highlights the urgent need for action on workforce resilience and cyber-readiness. FWA calls for sector-wide skills strategies, better digital training, and mandatory board-level accountability for cyber security, especially as smart infrastructure expands.

On public trust, FWA points to the success of Welsh Water’s not-for-dividend model and suggests more water companies adopt community-focused governance frameworks. They also urge a review of developer connection rights, citing capacity and environmental concerns.

The recommendations are based on member insights gathered through FWA’s Future Water Report Card and nine active Working Groups spanning metering, leakage, innovation, regulation, digital resilience, and more.

In summary, the association argues that without bold reform—anchored by a national vision, coordinated regulation, and long-term planning—the sector will continue to fall short of environmental, operational, and public expectations.

Future Water Association – Response to the Independent Commission on the Water Sector Regulatory System